Abstract

Purpose- This paper analyses Malay firms' involvement in the globaliasation edge, since globalisation can be measured by exports. The percentage of products that have been exported would determine the firms' capability to compete. Neverthelss,many firm in small and medium enterprise (SME) are actually less capable of generating export and usually unable to compete at the international level. Based on this, this paper investigates to what extent the Malay firms plan to export their products in the future. In addition to that, this paper also determines related factors that effect firms to export by taking into account new factors based on the current literature. The Methodology - This study employed logistic regression, whereby the logit model was used to estimate factors affecting firms in export. This model was used because it can explain the response of independent variables. Apart from that, this model can estimate the effect of independent variables on the categorical dependent variable. Finding - The age of firm is very significant in determining the probability of firm to export. Other factors are size of firm,value of output,and level of education. In terms of type of industry, a firm's probability to export are concentrated in the beverage and food industry; textiles, wearing apparel andleather industry; wood products, paper, publication and printing industries. Originality - The paper explores intensively the factors affecting export in Malay firms. The result from this study will benefit the Bumiputera, particularly Malay,firms. The implication of this study can be used by policy maker in functioning more effective programmes and strategies. Paper type: Research paper